SjaelsÃ¸ Gruppen has realised a satisfactory result for 2004 based on a high level of activity. This high level of activity is expected to continue in 2005.
In 2004, SjaelsÃ¸ Gruppen experienced very substantial activity levels within residential construction, especially in its joint ventures with Doughty Hanson & Co. Real Estate Fund.
More recently, there has been an increasing interest in commercial projects. SjÃ¦lsÃ¸ Gruppen achieved a highly satisfactor y result in 2004 and the Board of Directors will again recommend to the companyâs Annual General Meeting that shareholders receive a dividend of DKK 40 per share.
Substantial activity in joint ventures
By establishing joint ventures with capital partners, SjÃ¦lsÃ¸ Gruppen is able to under take larger and more capital demanding projects than would be the case if the company were to engage in these projects alone. This also reduces SjÃ¦lsÃ¸ Gruppenâs financial commitment.
In 2002 and 2003, SjÃ¦lsÃ¸ Gruppen initiated a series of joint venture projects which are now contributing to the high level of activity.
This is reflected in both turnover and result for the joint ventures which, in 2004, accounted for a relatively large share of SjÃ¦lsÃ¸ Gruppenâs turnover and result.
On the backdrop of this, SjÃ¦lsÃ¸ Gruppen has decided to expand the main and key figures so that these contain information on the 100% consolidation of all activities and their effect on the result, balance sheet and key figures.
- Profits before tax for 2004 were DKK 231.4 million against DKK 200.8 million in 2003 corresponding to a 15.2% rise.
- Consequently, the previously announced expectations were more than fulfilled.
- Turnover, including activities in the joint venture companies, was DKK 1,743.9 million against DKK 1,087.7 million in 2003, corresponding to a 60.3% increase.
- At December 31, 2004 equity stood at DKK 718.7 million against DKK 615.1 million at December 31, 2003.
- The financial targets relating to solvency and liquidity were more than met.
- Residential activities comprise current projects and projects on offer totalling 1,400 properties of which 925, or 66%, per 31.12.04 already have been sold. The total project value is approx. DKK 3 billion. After closing of the financial year further 250 properties have been sold.
- Building projects are proceeding as planned.
- Commercial projects at a total project value of approximately DKK 820 million were completed in 2004.
- The switch to the International Financial Reporting Standards (IFRS) from January 2005 has no significant effect on the companyâs result, equity and other balance sheet items.
- Profits of approximately DKK 250 million before tax are expected for the 2005 financial year.
Source: SjaelsÃ¸ Gruppen